Small Volume High Price vs Large Volume Low Price

A couple of projects I’ve been working on lately have made me think really hard about these two vastly different strategies.

If you are promoting a low price product, you’re going to need a lot of volume to make a high profit with it, obviously.

With a huge volume / low price point or payout you need to:

  • Pay for data transfer for your landing pages or products.
  • Have high volumes of traffic that won’t run out suddenly or require constant scaling issues.
  • An automatic product that doesn’t require a ton of your time because of the low price point.

Most people always forget about the server resources, management aspect and scalability of a high traffic volume / low price point campaign.

Then, what happens if you suddenly lose your high volume traffic source? Bye bye campaign, until you can replace it.

What’s a better strategy?

I find myself dealing with higher priced products or affiliate offers where I don’t have to worry about sending 10,000 uniques a day to a landing page to make a heavy profit. Nothing sucks more than to lose a cheap high volume traffic source and have your business crumble.

Sure, you can make money in low price / high traffic volume but it can be very unstable and cause gray hairs, headaches and all sorts of nonsense when that traffic runs dry (or someone steals your campaign.)

I’ve been dealing with campaigns in the $500-$5,000 price range recently. List Playbook is my current coaching site and doing really well, with no high volume traffic campaigns. Just small Facebook, and other PPC and email campaigns that are super easy to manage.

Another benefit is that with a smaller campaign you can personally take the time to respond to emails asking about your product, service or site. That 1on1 communication really helps with sales.

I have friends that do $2,000 products every year for the major marketing conferences. They always do at least 20 sales right at the event itself. That’s not because of the volume, only a few thousand people in total go to the events and less than 100 even see or hear about their product BUT the people that they actually talk to, always end up buying.

Just some food for thought! If you can do 20 biz-ops in a week and make $35, you can probably do 20 $500+ products in a week as well. It’s about the same amount of work! Just keep in mind that with a higher priced product, service or site people are expecting a lot more than an eBook!

My vote: High price is the way to go!


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Comments

  1. agreed, good post. the only issue is that higher priced items can have more competition for you to deal with.

  2. That’s an interesting way to look at it. High paying offers instead of the cheap stuff. You should expand on the kinds of leads/offers you’re doing.

  3. Ed Kennedy says:

    How so?
    Sure, the more money there is on the line more people will want to grab it. I could see how there would be a difference in competition in high and low prices. However, I wouldn’t agree that there is necessarily more or less competition. Like any product you should be able to position yourself so that competition is not an issue.

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